Please prohibit restaurants from automatically adding service charges, typically 12.5%, on top of menu prices, as they cause a misleading indication of price and distort competition. Menus should show total prices that restaurants expect to be paid for each dish or drink including service charges.
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The starting point should be the total price including service, and in the event of poor service, Sections 54(3)(b) and 56 of the Consumer Rights Act 2015 already give the right to a price reduction, which can be more than 12.5%. In the event of exceptional service, diners can add a tip. Because automatically-added service charges are technically optional in that diners can in theory ask for them to be removed, restaurants exclude them from VAT, thereby cheating the Exchequer out of tax revenue.